Small businesses are already switching banks

The Story: Each year, companies change their financial services providers at a typical rate of around 10%. After a crisis, however, that rate historically rises to around 25% – and 2020 is proving no different, with switching activity already beginning to increase.

The Takeaway: The COVID crisis and its economic impacts have presented unprecedented challenges for nearly all parts of society. But these challenges have also created opportunities: Consumers and businesses are rethinking and reprioritizing their brand relationships en masse, and financial institutions should prepare for a significant uptick in potential new commercial business from companies seeking a more efficient and connected banking experience.

Source: Novantas September 2020